Suddenly, the monthly BofA fundies survey is like rereading MB Fund output for the past three months:
Bottom line: investors much less bullish on growth, profits &yield curve steepening, have unwound junk>quality, small>large, value>growth trades back to Oct’20 levels (pre-vaccine/election), but maintain big longs in stocks (back to tech) & commodities.
Cyclical“boom” has peaked: July growth expectations @ 47%, down from 91% peakinMar’21; global GDP & EPS readings show macro momentum weakest since Q3’20.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
